CORRECTION: KPC to respond to E. Kalimantan govt in court on Feb. 5

The South Jakarta district court said on Wednesday it would hold another hearing on Feb. 5 over dispute between the East Kalimantan provincial administration and coal producer PT Kaltim Prima Coal (KPC).

Previously reported that the hearing would be held on Feb 4.

The court said that in the hearing KPC will respond to the East Kalimantan administration?s charges that the coal miner had declined to divest 51 percent of its shares to the province as stipulated by the contract KPC had signed with the Indonesian government. The province had declared its intention to buy the 51percent stake.

The contract stipulates that KPC has to sell up to 51 percent of its stake to the Indonesian government, state firms or Indonesian-owned companies after 10 years.

KPC declined to sell its shares to the East Kalimantan because the latter values the 51 percent stake at US$320 million only, while KPC is ready to sell it at $453 million.

KPC?s presently operates coal mines in Sangatta in East Kutai Regency, East Kalimantan. Equally owned by Anglo-Australian mining giant Rio Tinto and Anglo-American energy giant BP PLC, the firm produces 15 million tons of coal annually.(Godang)